French Court fines eBay over fake goods

A French court has ordered eBay to pay 40m euros (£31.6m; $63m) to luxury goods group LVMH for allowing online auctions of fake copies of its goods.

LVMH said eBay's French site had not done enough to stop the sale of counterfeit bags and perfumes.

The brands affected include Louis Vuitton, Christian Dior and Givenchy.

An eBay statement said LVMH was trying to "protect uncompetitive commercial practices at the expense of consumer choice" and added that it would appeal.

Vanessa Canzini, an eBay spokeswoman, said: "If counterfeits appear on our sites, we take them down swiftly, but today’s ruling is not about our fight against counterfeit.

"Today’s ruling is about an attempt by LVMH to protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers that eBay empowers everyday.

"We will fight this ruling on their behalf; we will be seeking leave to appeal.”

According to the judgement, eBay must pay 19.28m euros in damages to Luis Vuitton Malletier, 17.3m to Christian Dior Couture and 3.25m to the perfume brands.

The BBC's Hugh Schofield in Paris says the ruling is seen as a landmark, because it could oblige eBay to rethink its business model.

Until now, this has been built around the simple notion of bringing together buyers and sellers, with minimal supervision from the company.

The penalty is the second in a month imposed on eBay by French courts.

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